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Exercise $7-7$A $($Algo$)$ Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO $7-2$

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Leach Incorporated experienced the following events for the first two years of its operations.

Year $1$:

Issued $$20,000$ of common stock for cash.

Provided $$89,000$ of services on account.

Provided $$46,000$ of services and received cash.

Collected $$79,000$ cash from accounts receivable.

Paid $$48,000$ of salaries expense for the year.

Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that $4$ percent of the ending accounts receivable balance will be uncollectible.

Closed the revenue account.

Closed the expense accounts.

Year $2$:

Wrote off an uncollectible account for $$1,150.$

Provided $$98,000$ of services on account.

Provided $$42,000$ of services and collected cash.

Collected $$91,000$ cash from accounts receivable.

Paid $$75,000$ of salaries expense for the year.

Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that $4$ percent of the ending accounts receivable balance will be uncollectible.

Closed the revenue account.

Closed the expense accounts.

Exercise $7-7$A $($Algo$)$ Part d

d$.$ Record the Year $2$ events in general journal form and post them to T$-$accounts. Prepare the income statement, statement of changes in stockholders$$ equity, balance sheet, and statement of cash flows for Year $2.$ What is the net realizable value of the accounts receivable at December $31,$ Year $2?$